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Global Construction Industry Optimistic: KPMG
January, 28th 2011

The KPMG 2010 Global Construction Survey, Adapting to an Uncertain Environment, has found that the slow economic recovery drives E&C companies to become leaner, more strategic and that players forecast increases in backlogs with plans to expand into new services and geographies.

Another outcome of the opportunity to redefine their businesses is that many of the global players are creating new integrated services offerings or expanding overseas to increase market opportunities.

Other findings include indications that few companies expect to lay off workers in 2011, while 31 percent said they will likely hire more direct labor in that period. Margins have taken a cut over the last year, as most respondents said they had to reduce prices. As well,

Meanwhile, government stimulus initiatives around the world have had varying levels of success, with more than 35 percent of respondents from Asia Pacific stating that stimulus efforts have had a significant impact. In contrast, the majority of respondents from EMEA and the Americas said the stimulus did not improve market opportunities.

With signs of economic improvement on the horizon, E&C companies are looking at ways of funding their geographic expansion and new offerings. Credit is still tight with 47 percent saying that financing is still very difficult to obtain. Many respondents mostly those outside the US consider public-private partnerships (PPPs) to be a good bet for the industry if there is government backing. 


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